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Marketing Communications
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The Communications Process
Message Media Sender Encoding Decoding Receiver Noise Feedback Response
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Marketing Communications mix
Advertising Direct marketing Sales Promotion Personal selling PR and Publicity Each of these has its own uses and limitations and hence a judicious mix is employed by most companies.
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Integrated Marketing Communications
This brings about synergy and better use of communication funds Balancing the ‘push’ and ‘pull’ strategies Improves the company’s ability to reach the right consumer at the right place at the right time with the right message.
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Distortions in Communication
Selective attention Selective distortion Selective retention
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Factors influencing effectiveness of communications
when the recipient’s source of communication is single When message is in line with recipients opinions and beliefs When issues are unfamiliar or peripheral issues When the source is an expert, of high status, likeable, has power and can be identified with When social context or reference group will mediate the communication and influence acceptability
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Communications model AIDA model The hierarchy of effects model
The innovation – adoption model
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AIDA Model Attention Interest Desire Action
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The Hierarchy of Effects model
Awareness Knowledge Liking Preference Conviction Action
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The Innovation Adoption model
Awareness Interest Evaluation Trial Adoption
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Message Content Structure Format Source
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Message Source Source credibility Endorser
Depending on the attitudes of the consumer, the communication will either get a +ve , neutral or -ve response depending on what attitudes the consumer has of the endorser
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Message Format The message has to be considered depending on which media is going to be used – eg. Layouts, props, models, music, voice, etc.
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Communication channels
Personal – Direct selling,WOM Non Personal – media, atmosphere, events
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What is Advertising? It is any paid form of non – personal presentation and promotion of ideas, goods, services by an identified sponsor.
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The 5 Ms of Advertising Mission – objectives Money – budgets
Message – communication Media – what vehicles? Measurement - evaluation
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Advertising objectives
Informative Persuasive Comparative Reminder (reinforcement)
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Advertising Goal A specific communication task to be achieved to a specific degree to be communicated to a specific target audience in a specific period of time.
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How much to spend? ‘Half my advertising is wasted, but the trouble is I do not know which half - John Wanamaker
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How much to spend? Depends on the product What stage in the PLC
Market share and the consumer base Competition and clutter Ad frequency Product substitutability
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Media selection The most cost effective media mix to ensure achievement of the advertising goal.
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How should you select media?
Reach Frequency Impact
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Reach No. of persons exposed to a particular media schedule at least once during a specified time period
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Frequency No. of times within the specified period that a person is exposed to that message
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Impact Qualitative value of an exposure through a given medium
GRP (Gross rating points) = R * F Wt. GRP = R * F * I
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Sales Promotion Whereas advertising gives a reason to buy, SP gives an incentive to buy
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Advantages of SP Induces trials To reward loyal customers
To induce stocking by the trade Adjust to short term variations in trade Liquidating inventories Preempting competition
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Disadvantages of SP With too many promotion schemes ‘promotion clutter’ confuses consumers Attracts ‘brand switchers’ and ‘deal prone’ customers Dilutes brand equity Preponement of purchases Lowers margins Expensive and wasteful, when not handled properly
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Types of SP Trade Consumer
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Developing a SP campaign
Planning the programme Duration Incentive to be given Assessing viability Pretesting Implementing and controlling Evaluation
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Public Relations Involves a variety of programmes to promote or protect a company’s image or products
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Functions of PR Media relations Product publicity
Corporate communications Lobbying Counseling
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MPR Assisting in new product launches
Assisting in repositioning of product Building interest in product category Influencing specific target groups Defending products that have encountered public problems Building corporate image that rubs off on the products
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Advantages of MPR Building awareness Building credibility
Stimulate sales force and dealers Holds down promotion costs
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The bottom line PR is difficult to measure, but if consistently pursued with, it can have tremendous synergy with advertising and sales promotion, thereby reducing overall promotion costs
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